Natural gas storage market to grow at CAGR of 3.7%

Transparency Market Research has released a new market research report titled, ‘Natural Gas Storage Market, By Type (Above-ground Storage and Underground Storage (Depleted Reservoirs, Salt Caverns, and Aquifers) - Global Industry Analysis, Size, Share, Growth Trends and Forecast, 2015 – 2023’. According to the report, the global natural gas storage market stood at 392,831.22 million m3 in 2014 and is likely to reach 548,798.39 million m3 by 2023, expanding at a CAGR of 3.7% between 2015 and 2023.

The global natural gas storage market was dominated by Europe in 2014. Demand for natural gas storage facilities is anticipated to be high in the region due to increasing concerns of energy security (uninterrupted supply of natural gas at affordable rates). A natural gas storage facility is vital as it balances the seasonal peak load demands and provides sustained supply of natural gas. Countries such as Germany, Italy, and France are increasing their natural gas storage capacity to reduce dependence on natural gas imports and to improve local natural gas inventory for applications such as district energy and combined heat and power (CHP) generation.

Factors such as increasing natural gas demand, growing energy security concerns, and favourable government regulations and incentives are anticipated to boost the natural gas storage market in Europe in the near future. However, higher capital costs and installation costs have hampered the growth of the natural gas storage market in the region. Russia is the market leader in terms of natural gas storage capacity in Europe.

North America was the second largest market globally in terms of storage volume of natural gas in 2014. Underground storage facilities accounted for the major share of the market in North America in 2014. The US was the leading player in terms of natural gas storage capacity in North America. Increasing production of natural gas, owing to shale gas and hydraulic fracturing technologies, has boosted the construction of natural gas storage facilities in North America.

Natural gas storage capacity in Asia Pacific is increasing due to rising awareness about benefits of natural gas storage and energy security. China is expected to be the leading player in the natural gas storage market in Asia Pacific in the near future. Growth in natural gas storage capacity in Asia Pacific is primarily driven by increasing demand for natural gas and rising concerns of energy security. Asia Pacific is expected to be the fastest growing market for natural gas storage during the forecast period. Rest of the World (RoW) accounted for the least share of the global natural gas storage market in 2014.